Washington, DC, July 16, 2014 -- Builder confidence in the market for newly-built single-family homes rose four points in July to a reading of 53 on the National Association of Home Builders/Wells Fargo Housing Market Index.
Any reading over 50 indicates that more builders view sales conditions as good than poor.
“This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace,” said NAHB Chairman Kevin Kelly.
“An improving job market goes hand-in-hand with a rise in builder confidence,” said NAHB Chief Economist David Crowe.
“As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home.”
All three HMI components posted gains in July. The index gauging current sales conditions increased four points to 57, while the index measuring expectations for future sales rose six points to 64 and the index gauging traffic of prospective buyers increased three points to 39.